Unveiling the Universal Practice of Tax Evasion: Impact and Solutions
Tax evasion is a widespread issue influenced by economic factors, types of income, and social norms. The theory of tax evasion has limitations as it relies on risk attitudes and information about tax administration. Methods to estimate tax evasion involve calculating the underground economy and comparing declared taxes with potential revenue. To combat tax evasion, strategies like withholding taxes, presumptive taxes, audits, penalties, and cross-checks between taxes are used.